CP Ships moves into logistics with Canadian acquisition

CP Ships moves into logistics with Canadian acquisition    CP Ships, the Canadian-registered container-shipping group, is making its first move into logistics with the acquisition of Montreal-based ROE Logistics, a medium-sized forwarding and logistics firm.
   A family-owned business founded in 1979, ROE provides freight forwarding, customs brokerage, logistics, warehousing and distribution services. It has offices in Montreal, Toronto, Calgary and Vancouver and gross revenues of $27 million, excluding customs duty and tax.
   Terms of the acquisition were not disclosed. The takeover is expected to be completed in the second quarter.
   The ROE acquisition will provide a modest platform to the $3.1-billion CP Ships group to develop forwarding and logistics services.
   Contrary to most major container-shipping groups, such as APL, MOL, Maersk, P&O Nedlloyd, “K” Line and OOCL, CP Ships had refrained from entering the logistics and freight consolidation businesses.
   CP Ships said it is now ready to “selectively” enter logistics.
   “As a way of leveraging our strong regional positions and adding value to our core container services, we are selectively developing logistics services in markets where it makes sense,” said Ray Miles, chief executive officer of CP Ships, commenting on the acquisition.
   “ROE will enable us to build on the container transport services we offer our Montreal and Vancouver gateway customers,” he added.
   Robert Elvidge, founder and current owner of ROE, will remain CEO of the company.